NZD/USD jumps 20 pips as New Zealand lowers unemployment forecast


  • The NZD finds buyers as Prefu sees a lower unemployment rate for the June quarter. 
  • NZD/USD jumps 20 pips to hit session highs above 0.6720. 
  • Risk-on could power stronger gains in the New Zealand currency. 

The New Zealand dollar is drawing bids and pushing the NZD/USD pair with New Zealand's pre-election economic and fiscal update (Prefu) lowering the peak jobless rate forecast to 7.8% from 9.8% projected in the budget. 

The pre-election update also revised the June quarter gross domestic product (GDP) forecast to -16% from the previous projection of -23.5%. 

"The initial economic impact of COVID-19, while still large, has been less severe than anticipated in the Budget Update, with a faster-than-expected move down alert levels, and high-frequency activity indicators suggesting activity has picked up sooner than expected," the report said. 

However, inflation is likely to remain low due to weaker commodity prices and a strong exchange rate, the report added. So far, however, markets have ignored the dismal inflation forecast. 

The NZD/USD pair has risen from 0.6702 to 0.6722 on the pre-election update but remains well below Tuesday's high of 0.6737. However, that level could come into play during the day ahead if risk sentiment remains strong, keeping the safe-haven greenback under pressure. 

The futures tied to the S&P 500 are currently trading flat. Analysts at JPMorgan believe the stock market pullback has ended, according to Bloomberg. 

Technical levels

NZD/USD

Overview
Today last price 0.6722
Today Daily Change 0.0007
Today Daily Change % 0.10
Today daily open 0.6714
 
Trends
Daily SMA20 0.6657
Daily SMA50 0.6625
Daily SMA100 0.6458
Daily SMA200 0.6391
 
Levels
Previous Daily High 0.6737
Previous Daily Low 0.6683
Previous Weekly High 0.6724
Previous Weekly Low 0.6601
Previous Monthly High 0.6764
Previous Monthly Low 0.6488
Daily Fibonacci 38.2% 0.6716
Daily Fibonacci 61.8% 0.6704
Daily Pivot Point S1 0.6686
Daily Pivot Point S2 0.6657
Daily Pivot Point S3 0.6632
Daily Pivot Point R1 0.674
Daily Pivot Point R2 0.6765
Daily Pivot Point R3 0.6794

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds gains above 1.1850 amid tepid market mood

EUR/USD is trading above 1.1850, holding onto recent gains The uptrend, however, at risk as coronavirus cases rise across the Eurozone. New lockdown restrictions may force the ECB to adopt a stronger dovish stance. Focus shifts to Powell's speech, EZ Preliminary PMIs. 

EUR/USD News

GBP/USD hovers around 1.2950 amid likely virus curbs

GBP/USD stays well bid near  mid-1.2900s following three successive failures to cross 1.3000 during last week. UK’s health authorities mull lockdown restrictions. Chancellor Sunak may extend business support loans. Fedspeak eyed amid a light calendar. 

GBP/USD News

Gold due for a breakout, according to key indicator

Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish. The yellow metal has carved out a descending triangle pattern over the past four weeks.

Gold News

Forex Today: US dollar sags amid fiscal overhang, mounting coronavirus risks

The US dollar remained on the defensive starting out a fresh week this Monday, extending last week’s softness, courtesy of the gridlock on the US fiscal stimulus.

Read more

WTI buyers attack $41.00 amid US-Iran tension, escalating virus woes

WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. The energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Hopes of further stimulus, China’s optimism favor energy bulls.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures